Do you agree with the publisher''s analysis

Reference no: EM131020492

The publisher of a magazine gives his staff the following information:

Current price	$2.00 per issue
Current sales	150,000 copies per month
Current total costs	$450,000 per month

He tells the staff, "Our costs are currently $150,000 more than our revenues each month. I propose to eliminate this problem by raising the price of the magazine to $3.00 per issue. This will result in our revenue being exactly equal to our cost." Do you agree with the publisher's analysis? Explain. (Hint: Remember that a firm's revenue is calculated by multiplying the price of the product by the quantity sold.)

Reference no: EM131020492

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